Which banks in China have applied for a Hong Kong stablecoin license?

On August 1, 2025, Hong Kong's "stablecoin regulations" officially came into effect. Against this backdrop, global Financial Institutions have turned their attention to this land full of opportunities. Among them, the moves of Chinese banks are particularly noteworthy; their participation is not only a commercial layout but is also regarded as a barometer with far-reaching strategic significance.

As of the end of August, up to 77 institutions have expressed their intention to apply for licenses from the Hong Kong Monetary Authority (HKMA), but the authority has clearly stated that only a very limited number of licenses will be issued in the first phase. In this "one in a hundred" competition, which Chinese-funded banks have entered the fray, becoming the focus of market attention.

Not just Chinese banks

It is reported that at least two of China's top state-owned banks have clearly expressed their intention to apply for a stablecoin license through their Hong Kong subsidiaries. Industrial and Commercial Bank of China (Asia) Limited (ICBC (Asia)) According to Hong Kong media "Xinbao," ICBC Asia, the largest bank by asset size in China with a branch in Hong Kong, has expressed its intention to apply to the Monetary Authority. This move is significant as it not only represents the high recognition of Chinese-funded banks for the development path of Web 3.0 in Hong Kong but may also resonate with the long-term strategic goal of renminbi internationalization, exploring the possibility of launching a regulated stablecoin pegged to offshore renminbi (CNH) in this offshore center. Bank of China (Hong Kong) Limited (BOCHK) Bank of China Hong Kong not only intends to apply for a license but has also established a dedicated working group to actively promote the relevant process, striving to become one of the first licensed institutions. This means that two of the three major note-issuing banks in Hong Kong have already entered the market (the other is Standard Chartered Bank). As a major commercial banking group in Hong Kong, Bank of China Hong Kong's participation in the application for a stablecoin license is also highly anticipated by the market. It is generally interpreted that if Bank of China Hong Kong successfully obtains approval, its business will not only profoundly impact the local digital asset ecosystem in Hong Kong but may also be linked to the development of stablecoins pegged to offshore renminbi (CNH), becoming an important "testing ground" for promoting the internationalization of the renminbi.

The participation of these two major state-owned banks clearly outlines a path dominated by traditional financial giants in the Hong Kong stablecoin market. This stands in stark contrast to the situation in Europe and the United States, which is largely led by emerging fintech companies, and also highlights Hong Kong's determination to incorporate stablecoins into a mature and robust financial regulatory framework.

Despite the aggressive advance of Chinese banks, they are facing exceptionally fierce competition. The competition for stablecoin licenses in Hong Kong is a showdown of top global Financial Institutions.

International banking giants: As two other note-issuing banks in the Hong Kong market, HSBC and Standard Chartered have also expressed their intention to apply. Although HSBC's stance is more cautious, it has clearly stated that it is "closely monitoring and actively exploring" opportunities in the stablecoin sector. Being one of the first institutions to actively participate in the Hong Kong Monetary Authority's "Fintech Regulatory Sandbox," Standard Chartered has been particularly proactive by establishing a joint venture, Anchorpoint, with Hong Kong Telecom and renowned Web3 company Animoca Brands. It was one of the first to publicly announce its application intention, gaining a certain first-mover advantage in technological layout and market readiness. Therefore, the market widely believes that Standard Chartered is highly likely to become one of the first Financial Institutions to obtain an official stablecoin license in Hong Kong.

Technology and Internet Companies: In addition to banks, tech giants are also significant players. For example, affiliated companies of Ant Group and JD Group have shown a keen interest in licenses. They hope to leverage their vast e-commerce and payment networks to apply stablecoins in scenarios such as cross-border payments, creating a new entry point for digital assets.

Strategic Considerations for Entry

Why are these traditional banking giants, who usually take stability and risk control as their golden rules, so actively diving into the seemingly volatile cryptocurrency field? Behind this lies both a "survival anxiety" in response to disruptive threats and a "great ambition" to seize the opportunities of the times.

First, in the past few years, US dollar stablecoins issued by crypto-native companies such as Tether (USDT) and Circle (USDC) have established a huge payment and settlement network with a market value of hundreds of billions of dollars. Traditional banks are well aware that if global business, trade, and even personal payments begin to commonly use these non-bank issued stablecoins, the role of banks will be severely weakened and may ultimately be reduced to mere, low-profit "fiat currency deposit and withdrawal channels," that is, being "pipeline-ized." Therefore, personally issuing "bank-backed" stablecoins that are backed by their own credit and subject to strict regulation is an inevitable choice to defend their core position in the payment and settlement field.

Secondly, what the banking giants see is far more than just a substitute for existing stablecoins. What they truly covet is the enormous pie of the "tokenized economy" that could potentially reach hundreds of trillions of dollars in the future. Whether it's real estate, private equity, bonds, or real-world assets (RWA) like art, carbon credits, etc., they could all be tokenized in the future for efficient and transparent circulation and trading on the blockchain. And the completion of all these transactions requires a stable, trustworthy, and efficient on-chain settlement tool. The stablecoins issued by banks are the perfect vehicle for playing the role of this "bloodline of the future economy." Whoever controls the stablecoins controls the underlying settlement rights and core access of the future tokenized economy.

Finally, after experiencing the trust crisis brought on by the collapse of crypto platforms like Terra, the market's demand for asset security and compliance has reached unprecedented heights. Traditional banks believe they hold an unparalleled "trump card"—the brand reputation accumulated over hundreds of years and their ability to operate under strict regulation. Stablecoins backed by names like HSBC, ICBC, and Standard Chartered are undoubtedly attractive to institutional investors and risk-averse users.

However, despite the broad prospects, the road to success is not smooth sailing. The thresholds set by the Hong Kong Monetary Authority are extremely high, and applying institutions must meet stringent requirements in capital adequacy ratio, reserve asset management, risk control, anti-money laundering (AML), and customer identification (KYC). Some applicants admit that these requirements are stricter than expected.

In addition, Hong Kong is facing competitive pressure from the United States and Europe. The recently passed "GENIUS Act" in the United States and Europe’s "Markets in Crypto-Assets Regulation" (MiCA) have established a clear regulatory framework for USD and EUR stablecoins, further solidifying their dominant position in the global market. For Hong Kong stablecoins to gain widespread adoption globally, they still need to overcome numerous challenges.

Conclusion

In summary, the continuous entry of traditional banks not only adds a strong "national team" color to the Hong Kong stablecoin competition but also signifies that the traditional financial system is embracing the digital asset revolution with unprecedented depth and breadth.

The result of this licensing competition is expected to be revealed as early as the beginning of 2026. By then, regardless of who emerges victorious, it will profoundly reshape the digital financial landscape in Asia and even globally. The role and performance of Chinese-funded banks will undoubtedly be one of the most noteworthy chapters in this transformation.

#The total scale of RWA continues to grow